$Garrett Motion (GTX.US)$The price of a Swiss company listed...

Over the past five years, revenue has increased in three years and declined in two years, with an overall growth of less than 20%. The operating profit curve is similar to that of revenue, with little change overall. Net profit is a big loss in 2017 and a big profit in 2018. Profits fell for two years in the next three years, and net profit soared in 2021. 130 million of the restructuring and M & An income played a major role, accounting for 27% of the operating profit.

Revenue fell 9% in the first two quarters of 2022, operating profit fell 16.3%, and net profit fell 43%. Sure enough, the surge in 2021 was unsustainable.

The current price-to-earnings ratio of 4.2, the price-to-earnings ratio of TTM has reached an astonishing 53, at first glance, it seems that it should not be so high. A closer look at the balance sheet reveals a troublesome problem. Although net profit reached 495 million in 2021, dividends on the two types of preferred shares reached 380 million, leaving only 120 million of common shareholders.

The net profit in the first two quarters of 2022 is 85 million, but the net profit after dividends of preferred shares is only 10 million. This burden is weighed down, and the annual net profit belonging to common shareholders is only 20 to 30 million, corresponding to a price-to-earnings ratio of 14-21, which is also very high.

It doesn't look attractive at all at the moment.